Subaru success niche marketing at its best

Subaru's strong performance in New Zealand is being used as an international example of what niche marketing of an all-wheel-drive vehicle can achieve.

The carmaker's slice of the New Zealand market last year was 2.9 per cent, the third highest of any Subaru importer and distributor.

Subaru Switzerland, where because of harsh winters all-wheel-drive is popular, had the highest market share at 3.5 per cent, while Australia achieved 3.2 per cent.

"Australia showed what can be achieved in a growth market on the strength of the brand and great marketing effort," said Wally Dumper, the general manager of Subaru New Zealand.

But with registrations of second-hand imports, Subaru (its Legacy was the Herald's 1999 Car of the Year) had the largest market share of all registrations worldwide.

Subaru's parent company, Fuji Heavy Industries, is using the success of the carmaker in New Zealand to demonstrate to smaller distributors in Europe and South America that strong sales are possible in tough markets.

The Inchcape group, which owns Subaru New Zealand and is the largest independent distributor of motor vehicles in the world, is also using Subaru's success here as a model for its other similar-sized companies.

Meanwhile, Dumper doesn't expect much growth for Subaru this year, largely because of supply problems.

"There is only a limited amount of stock available and forward ordering is the the only guaranteed way to secure supply," he said.

Dumper cited the Impreza WRX as an example of a car in great demand. After June, no further shipments of WRX are expected until later in the year, when it will be part of the all-new Impreza range.

"Certainly, the new WRX will be different, but price positioning will be challenging, especially if the exchange rate between the kiwi and the yen stays the way it is."